Now that we’re most of the way through November, the story of 2016 has basically written itself. In the chart above, you can see that the year-over-year increase from 2015 to this year has been steadily widening. In percentage terms, what was a 10% increase a year ago is now a 20% increase. (Over the past 20 years, the average increase was around 6%.)
Where the sales are
Most of the sales in our real estate board take place in the 905 belt. Sales in the City of Toronto make up around 38% of the total; the other 62% are mostly in Halton, Peel, York and Durham. Average prices in York and Halton (where there are fewer condos) are actually higher than in the City. Moreover, the rate of price increases has been highest in the outlying communities.
The price increases should be seen against a backdrop of increasing supply. Record numbers of houses and condos have been changing hands during the past two years. At the same time, this increase has not kept pace with the surge in demand. Houses are especially sought after, with most houses receiving more than one offer, and many of them attracting five, ten or more buyers.
Boom, bust and echo
Some people had been wondering if millennials would take to home ownership. The unique 2016 market seems to answer that question. Add to this the much-vaunted foreign investors (who are definitely players in some parts of Toronto) and we have the recipe for a continuing sellers’ market.
If you’re a buyer, you need to be prepared. With your mortgage pre-approval and a strong understanding of the market, you’ll be able to make smart decisions. You may not win on your first time bidding, but the best-prepared buyers have a strong edge in this market.
In a rapidly changing market, you need smart, timely advice, whether you’re a buyer or a seller. We’re available to help… You can email us, or ask for James and Joanne at 416-483-8000.